Mr. GWINN. I am glad. You do not want to corrupt anybody to get votes to pass this bill.

Mr. ALLEN. On the contrary, sir, it is quite the opposite. I wrote on the school-lunch program that while I believed in the program, I thought Californians would get more for their money if they did not send it to Washington and try to get some back.

Mr. GWINN. That is right. I think you have good Republican

doctrine.

Mr. ALLEN. Thank you, sir.

Mr. McCOWEN. Mr. Lesinski.

Mr. LESINSKI. That was about the question I was about to talk of. I still think it is a good Democratic doctrine.

Mr. ALLEN. It is just plain good doctrine.

Mr. McCOWEN. Mr. Allen, you would not be averse to some money at least going back to the wealthy States that give so much for a program, would you, when you realize that there are so many of their areas that are poor financially and cannot support their own sections?

Mr. ALLEN. I can't answer that yes or no, sir. I would rather put it this way. I think those poor areas should get the money but I would rather see the Federal aid go through the States and let the States make that provision.

In other words, I like the California system that says that the California State aid goes to the local districts on an average daily attendance basis, and that the money, I think it is all of the money that the State contributes, or a high percentage of it, goes into the teacher salary fund, and it accomplishes the same purpose that I think you have in mind. But there would be eliminated any start of a system by which a wealthy State that was sending the money in would get a part of its own money back in effect. It would eliminate any possibility of Federal control coming because of Federal support being there.

California would be as free from Federal control in the future as it is now because it would not get any money in either event. Mr. McCOWEN. Thank you for your statement.

At this point, without objection, I ask unanimous consent that all of the statements of the witnesses today be placed in the record at the close of the questioning at their respective points.

Our next witness and the last one for today is the Honorable Stephen Pace. For the purposes of the record, Mr. Pace, you may state your

name.

STATEMENT OF HON. STEPHEN PACE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF GEORGIA

Mr. PACE. Representative Stephen Pace, Third Congressional District of Georgia.

Mr. Chairman, first, for the information of yourself and the members of the committee, I might state that my bill is in all essential respects identical with your bill 2653.

Mr. McCOWEN. 2953, you mean.

Mr. PACE. There are two or three very minor details where you spell things out and I do not, that are different, but they are essentially the same. And I certainly want to thank you and the committee for the privilege of this time.

Mr. Chairman, on January 3, 1947, I introduced H. R. 140, which authorizes $300,000,000 of Federal funds to be spent annually in helping more nearly to equalize educational opportunity in the public schools of the Nation. This was, I believe, the first bill of the kind offered in the House in this session of Congress. I cite that fact merely as evidence of my deep interest in the subject of this hearing. (H. R. 140 is as follows:)

[H. R. 140, 80th Cong., 1st sess.]

A BILL To authorize the appropriation of funds to assist the States and Territories in more adequately financing their system of public education, and in reducing the inequalities of educational opportunities through public elementary and public secondary schools

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Educational Finance Act of 1947."

SEC. 2. No department, agency, officer, or employee of the United States shall exercise any direction, supervision, or control over, or prescribe any requirements with respect to, any school, or any State educational institution or agency,. with respect to which any funds have been or may be made available or expended pursuant to this Act, nor shall any term or condition of any agreement or any other action taken under this Act, whether by agreement or otherwise, relating to any contribution made under this Act to or on behalf of any school, or any State educational institution or agency, or any limitation or provision in any appropriation made pursuant to this Act, seek to control in any manner, or prescribe requirements with respect to, or authorize any department, agency, officer, or employee of the United States to direct, supervise, or control in any manner, or prescribe any requirements with respect to, the administration, the personnel, the curiculum, the instruction, the methods of instruction, or the materials of instruction, nor shall any provision of this Act be interpreted or construed to imply or require any change in any State constitution prerequisite to any State sharing the benefits of this Act.

APPROPRIATION AUTHORIZED

SEC. 3. For the purpose of more nearly equalizing public elementary- and public secondary-school opportunities among and within the States, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1948, and for each fiscal year thereafter, the sum of $300,000,000 to be apportioned to the States as hereinafter provided.

APPORTIONMENT

SEC. 4. The funds appropriated under section 2 of this Act shall be apportioned to the respective States in the following manner:

(A) Multiply (a) the number of children from five to seventeen years of age in each State, as determined by the Bureau of the Census, for the third year next preceding the year for which the computation is made, by (b) $40.

(B) Multiply (a) the average of the annual income payments for each State, as determined by the Department of Commerce, for five years, including the third, fourth, fifth, sixth, and seventh years next preceding the year for which the computation is made, by (b) 1 per centum.

(C) If, for any State, the amount calculated under (A) exceeds the amount calculated under (B), the difference shall be the amount of Federal aid due each such State.

(D) Divide (a) the amount spent in each State from local and State revenues for current expenditures (excluding interest, debt service, and capital outlay) of public elementary- and public secondary-school education for the third year preceding the year for which the computation is made, by (b) the average of the annual income payments for each State, as determined by the Department of Commerce, for five years, including the third, fourth, fifth, sixth, and seventh years next preceding the year for which the computation is made.

When the percentage thus determined in (D) for any State is less than 2.5 per centum, the amount of Federal aid due such State, as computed under (C),

shall be proportionately reduced: Provided, however, That no State shall be apportioned less than $3 per child, ages five to seventeen years (inclusive), as determined by the Bureau of the Census, for the third year next preceding the year for which the computation is made.

(E) From not to exceed 2 per centum of the funds appropriated under section 2 such sums as may be necessary shall be apportioned by the Commissioner to Alaska, Hawaii, the Canal Zone, Puerto Rico, American Samoa, the Virgin Islands, and Guam according to their respective needs for additional funds for public elementary and public secondary schools upon the basis of joint agreements made with their respective educational authorities.

CERTIFICATION AND PAYMENT

SEC. 5. The United States Commissioner of Education shall certify regularly the amounts allotted under this Act to each State that has accepted the provisions of this Act to the Secretary of the Treasury, who shall, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer or corresponding official of such State the amount certified for each fiscal year in four equal installments, as soon after the first day of each quarter as may be feasible, beginning with the first quarter of the fiscal year for which appropriations made under the authorization of this Act are available. Each such treasurer shall account for the moneys received, and shall pay out such funds only on the requisition of the State educational authority.

AVAILABILITY OF APPROPRIATIONS

SEC. 6. (A) In order more nearly to equalize educational opportunities, the funds paid to a State from the funds appropriated under section 2 of this Act shall be available for disbursement by that State to local public-school jurisdiction, or other State public-education agencies, for all types of expenditures for public elementary schools (which may include kindergartens and nursery schools) and public secondary schools (which may include through the fourteenth grade).

(B) No provision of this Act shall be construed to delimit a State in its definition of its program of public education: Provided, That the funds paid to a State under this Act shall be expended only by public agencies and under public control.

STATE ACCEPTANCE PROVISIONS

SEC. 7. (A) In order to qualify for receiving funds appropriated under this Act a State

(1) through its legislature, shall (a) accept the provisions of this Act and provide for the administration of funds to be received; (b) provide that the State treasurer, or corresponding official in the State, shall receive the funds paid to that State under this Act and shall be required to report to Congress, through the United States Commissioner of Education, on or before the first day of November of each year, a detailed statement of the amount so received and of its disbursement; (c) provide that its State educational authority shall represent the State in the administration of funds received; (d) provide for an audit by the State educational authority of the expenditure of funds received and apportioned to local school jurisdictions, or other State publiceducational agencies, and for a system of reports from local school jurisdictions and other public-educational agencies of the State to such authority; (e) provide that the State educational authority shall make reports to the Commissioner with respect to the progress of education on forms to be provided by the Commissioner; (f) in States where separate public schools are maintained for separate races, provide for a just and equitable apportionment of such funds for the benefit of public schools maintained for minority races: Provided, That in any State in which the legislature has not taken the action specified in this section, the chief executive of such State may, until such action has been taken or until six months after the adjournment of the first regular session of the legislature in such State following the date of the enactment of this Act, whichever first occurs, take such action for such period as is required by this Act to be taken by legislative enactment; (2) either through its legislature, or through its State educational authority, if the legislature so directs, provide in such manner as to comply with the provision of section 5 of this Act a plan of apportioning the funds author

ized in section 2 of this Act that will make available, not later than the fifth year of the operation of this Act and each year thereafter, from all sources, to all local school jurisdictions, not less than $40 per annum per pupil in average daily attendance for current expenditures (excluding interest, debt service, and capital outlay) for the maintenance of a program of elementary. and secondary-school education; and

(3) shall transmit through its State educational authority to the United States Commissioner of Education official notice of acceptance and certified copies of the legislative enactments and the official regulations that may be issued by the State educational authority in connection with such funds. Any amendments of such enactments and revisions of official regulations shall in like manner be transmitted to said Commissioner.

(B) The funds appropriated under the authorization of this Act shall be allotted only to those States which, during the fiscal year preceding the fiscal year for which the apportionment is made, have provided from States' revenues for all public elementary- and public secondary-school purposes not less than either the total amount, or the amount per pupil in average daily attendance, actually spent for such purposes in the fiscal year ended in 1946.

(1) The funds allotted to any State from the funds appropriated under section 2 of this Act shall be paid by the State authority only to those local school jurisdictions that from State and local funds (which shall not be interpreted to include funds made available under this Act) pay average annual salaries to their teachers not less than the average annual salaries paid as of January 1, 1947, or the nearest prior date when school was in session: Provided, That not less than 60 per centum of funds so allotted shall be used for teachers' salaries.

SEC. 8. As used in this Act

DEFINITIONS

(a) The term "State" shall include the several States, the District of Columbia, Alaska, and Hawaii, Puerto Rico, the Canal Zone, American Samoa, the Virgin Islands, and Guam.

(b) The term "legislature" means the State or Territorial legislature or other comparable body, except that in the District of Columbia is shall mean the Board of Education, and in American Samoa and the Virgin Islands it shall mean the Governor.

(c) The term "minority race" or "minority racial group" shall mean any race or racial group that constitutes a minority of the population of the Continental United States.

(d) The term "State educational authority" means, as the State legislature may determine, (1) the chief State school officer (such as the State superintendent of public instruction, commissioner of education, or similar officer), or (2) a board of education controlling the State department of education; except that in the District of Columbia it shall mean the Board of Education, and in American Samoa, Guam, and the Virgin Islands, it shall mean the Governor.

SEPARABILITY

SEC. 9. If any provision of this Act of application thereof to any State, person, or circumstance is held invalid, the remainder of the Act, and the application of such provisions to other States, persons, or circumstances shall not be affected thereby.

Mr. PACE. I want to say that in my judgment the House of Representatives now has before it no matter of greater, long-time importance to the entire Nation than this pending legislation.

We are witnesses to the most serious crisis in the public schools that has existed since they first came into existence. I shall not undertake to review the evidence which amply justifies that statement. You will have before you experts who will give you the facts. I do want to note, however, that few States in the Nation are faced with a more critical condition in public education than my own State of Georgia. For the fiscal year ending June 30, 1946, the total income of the State of Georgia was approximately $78,000,000. Of this, in 1946, approximately $29,000,000 was allotted to the public schools of the

State. The budget already approved for 1947 allots $35,500,000 to the public schools. One hundred and one of the counties of the State levy a tax of 15 mills, for operation of schools. In addition the average tax levy in the cities for school purposes is approximately 10 mills. It will thus be observed that many of the people of the State are paying three taxes for school purposes. That is the State levy, the county levey, and the city levy.

The salary range for teachers is now from $1,026 to $1,980 per annum, supplemented by local funds when available. For the last several years the total average annual salary for Georgia teachers is as follows: I would be glad for the committee to follow this on this statement.

In 1940-41, $774; 1941-42, $839; 1942-43, $842; 1943-44, $896; 1944-45, $1,049; 1945-46, $1,064; 1946-47, $1,452.

I am sure the committee will agree that my State is making a heroic effort to do its full part in raising the teachers' standards, having increased the average annual salary for its teachers from $774 in the 1940-41 period to practically double that amount, or to $1,452 for the present year.

But I call your special attention to the fact that in order to do this my State has had to drastically cut expenditures in health, welfare, highway, and other essential services. Frankly, this is most unfortunate. But with our limited revenue I presume it was found to be the only method by which we could try to increase teachers' salaries and increase the standard of teachers for our children.

But even this has not brought us up to that standard which we must have in order that the children of my State may have an equal opportunity with the children throughout the Nation.

The result is that today the youth of our State, like the youth of many other States, are in the classrooms directed by persons who are not prepared to do the job. We cannot get good teachers for the money we pay. Our young people, knowing this, are refusing to select teaching for career purposes. Between the school years of 1943–44, and 1944-45, our elementary and secondary schools lost 6,699 teachers, or one-third of the total teaching staff. In 1946, we had only 445 young people available from Georgia's colleges and universities to replace 4,475 white vacancies.

Of the 445 new teachers from our colleges and universities 150 had but 2 years of college training. We have been forced to certificate high-school graduates who have reached 18 years to fill many vacancies we otherwise would have. This condition in our schools, Mr. Chairman, is not entirely a State responsibility. It is in part a national responsibility. Georgia is not a rich State. Its resources are limited in part because many of the earnings derived from enterprises within the State quickly flow to the great centers of capital in the North and the East. Here is a chief reason why it is necessary to tax wealth where it is, to educate children where they are.

It is because I have, through the period of two tragic wars, witnessed the appalling price we have paid because of the educational shortcomings on the part of the millions of our people that I offer this bill.

The bill authorizes $300,000,000 per annum to assist the States in strengthening the weakest parts of their school systems. It is so